The number of Cayman-registered funds continued to decline in 2016, but the value of the assets managed by such entities increased that year, according to the Cayman Islands Monetary Authority’s recently released 2016 Investments Statistical Digest.
There were 10,586 funds in Cayman by the end of 2016, which was a 3.2-percent decline from 2015. Total and net assets increased by US$435 billion and US$17 billion, respectively.
This continues a trend that has existed since 2013, when a record 11,379 funds were registered or licensed in Cayman, according to the Investments Statistical Digest.
CIMA attributed the continuing increase in the value of assets under management to asset appreciation and positive net income, as well as lower performance, administration and management fees incurred by the funds.
At the end of 2016, the total assets and the net asset value were US$6.14 trillion and US$3.59 trillion, respectively. Net income was US$127 billion, an increase from US$76 billion in 2015.
According to CIMA, in 2016 there was a net capital outflow during the year, as redemptions exceeded subscriptions by US$86 billion.
“Investors shed risky assets amid continued global growth fears and falling commodity prices. However, this unease was offset by strong labor market data and an increase in interest rates which helped calm concerns about the United States economic recovery leading most assets to rebound from 2016,” CIMA noted. “Improved financial performance is also due to the U.S. stock market growth, the prospect of large-scale deregulation, tax reform and the general pro-business stance of the new U.S. administration.”
The regulator stated that the statistics illustrate that Cayman “continues to be a leading jurisdiction within the funds industry.”